Air New Zealand Suspends Guidance as Jet Fuel Fluctuates

Air New Zealand suspended its earnings guidance as wildly fluctuating jet fuel prices mean the assumptions it made less than two weeks ago are no longer valid.

The Middle East conflict has led to extreme volatility, with jet fuel rising to as much as $200 a barrel in recent days from around $85 beforehand, the Auckland-based airline said Tuesday. In particular, the crack spread — the difference between crude oil and the price of refined jet fuel — has surged, and the airline has no hedges in place against it.